Citi Takes Down Estimates on US Retailers; Downgrades Target (TGT), Removes JCPenney (JCP) from 'Top Picks' List (M) (KSS)

Citi's Deborah Weinswig took a hatchet to her estimates on the US's major retailers Tuesday morning. The analyst cited July same-store sales which appear to be coming in worse than expected and a more cautious view on the back-to-school season. Weinswig also warned of possible pressure on gross margins given elevated inventory levels.

The analyst made the following revisions:

• Target (NYSE: TGT) - downgraded from Buy to Neutral, price target reduced from $69 to $68, July comps growth estimate lowered from 3-5 percent previously to 1-3 percent, FY13 EPS estimate lowered from $4.36 to $4.25
  
• JCPenney (NYSE: JCP) - removed from "Top Picks Live" list, price target lowered from $40 to $24, FY13 estimate lowered from $2.20 to $1.10
  
• Macy's (NYSE: M) - price target lowered from $38 to $37, July comps growth estimate from 2-4 percent to 0-2 percent, FY13 estimate lowered from $3.30 to $3.20
  
• Kohl's (NYSE: KSS) - target cut from $56 to $55, July comps growth estimate cut from 1-3 percent to 0-2 percent, FY13 estimate reduced from $4.69 to $4.38

The SPDR S&P Retail ETF (NYSE: XRT) is down 0.05 percent at last check.

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